Turkish stocks rose nearly 1 percent to fresh record highs, after soaring nearly 60 percent last year as investors favoured the country as an alternative to the euro zone. South African stocks hovered below the previous day's record highs.

Russian stocks jumped 3 percent after a week of holidays, playing catch-up on the initial global euphoria about the US budget deal.

Egypt's pound hit record lows after the central bank offered $60 million to banks at a foreign currency auction, under a new system aimed at curbing a decline in foreign exchange reserves.

The pound has plummeted 4 percent since the auction system was introduced on December 30.

Egyptian stocks hit two-month highs, however, and the country's debt insurance costs fell, according to Markit.

The Czech crown touched its lowest in almost two months against the euro on concern that policymakers will use currency interventions as the next tool to ease monetary policy.

Romania's debt insurance costs are at their lowest since August 2008 in the five-year credit default swap market, according to Markit, following a recent election which allayed worries about the country's IMF-led aid deal. - Reuters